COVID 19 A Global Pandemic: Global Industry Shift
Consumer Shifts & Brands Future Innovations Contents page: Part 1 :
3 - Executive Summary 4 - Research and Analysis: Coronavirus Disease (COVID-19) 5 -Prior Pandemic : Consumers Getting “WOKE” 6/7 - Prior Pandemic The rise of global sustainability 7/14 - Fashion strategy’s in the Pandemic Lockdown
Part 2 :
14/20 : Current Consumer Shifts
Part 3 :
20-34 : Puma Business model Innovations
Part 4:
35-36 : Future Fashion Landscape Executive Summary:
The objective of this report is an exploration study of the current fashion environ- ment and the future predictions of consumers wants and desires. The world is in Pandemic lockdown and the spread of the Covid-19 virus has re-shaped the fashion industry.
Part 1. Will investigate what is currently happening in the industry following the un- predicted pandemic.
Part 2. Exploring the potential long-term consumer shifts ranging from lifestyle changes, the shopping environment and sustainability demand in fashion.
Part 3. Centre on future business model innovation opportunity’s following the pan- demic.
Part 4. Discussing the potential future virtual/physical landscape innovations for fashion brands post pandemic. Research and Analysis: Coronavirus Disease (COVID-19)
The fashion environment is an ever-changing business landgrab; Brands are constant- ly innovating and developing new techniques to stand out.
However what business forecast can predict what lays ahead when a dominant and deadly global health pandemic hits?
The global pandemic evolved in Wuhan, China in December 2019(CNN, 2020). The spread of the deadly virus was rapid and by March 2020 every country in the world has infect- ed cases. This resulted in an ordered global pandemic lock-down by the world health organisation (Advice for public, 2020).
Globally schools, offices, none essential traveling and none essential shops are all closed, due to spreading risks and social distancing is enforced.
The pandemic has caused the normality’s of life to come to a halt, influencing con- sumers to adapt to new values and a new way of life. Prior Pandemic : Consumers Getting “WOKE”
Prior to the pandemic the fashion envi- ronment was a very competitive and an ever-changing industry to operate in. Drastically business predictions for the year 2020 were not fully optimistic, the term “high alert red zone” was associat- ed with the year. The pandemic was not in full growth in the end of 2019 however brands had “uncertainty; vulnerability and strategies predictions” for 2020 business redundancy’s due to the global virus anxi- ety growth in the industry. (The state of fashion 2020; Corona virus update, 2020).
The fashion industry prior pandemic was at a shift of change a global sense of con- sumers “getting woke” (The state of fashion,2019). A growth of emerging the term of “getting woke” into fashion. Pushing pressures of social issues (such as diversity and femi- nism) and environmental issues (such as sustainability and upcycling) on brands Corporate social responsibility values. Consumers have a heightened sense of power and they expect brands to “inte- grate social and environmental themes into their products and services” (state of fashion,2019).
Consumers are expecting more corpo- rate values from brands to be a part of the societal shift of “getting woke”. Brands are facing a race to stay relevant with product but also being integrated thought-out , with what is the norm and expectation in society. “Some two thirds of consumers worldwide would say they would switch, avoid or boycott brands based on their stance on controversial issues”
(state of fashion,2019). Prior Pandemic The rise of global sustainability
The rise of fashion sustainably transpar- “life after meat campaign” (vogue Arabia, 2019). ency has been a key driver in the indus- A increase of the trend of athleisure and try shifts” (The state of fashion,2019). The anti-fast comfort confidence. The jewellery -lead fashion movement and transparency in er Tiffany & Co releasing this statement “ the industry Prior pandemic had been sustainability is not a compromise but an touched on by the fashion industry but inspiring challenge”(vogue,2019) regard- not yet fully integrated. Smaller more in- ing the sourcing strategy of product gem- novation lead brands have taken the lead stones. with embracing this change. Such as evolv- ing digital based brands such as “Depop” a Sustainable High fashion Designer Stel- upcycling application for consumer sec- la McCartney ”Sustainability is not just a ond-hand selling and brands such as “rent buzz-word it’s a way of life” (vogue Arabia ,2020) the runway”; London fashion week sustain- Linking to the consumer shift of “getting ably incorporations such as going fur-free woke” how consumers are taking back and a focus on “showcasing new brands power from brands and society for moral new brands with a focus on sustainability, choices and transparency; emphasising craftsmanship and ethics” (Sharell, 2020) high- how brands are innovating to meet this lighting the movements growth. growth.
Industry insiders have featured many re- “I can see a change in terms of peo- ports and article’s on the evolving topic ple’s perception. There is a fast fash- such as dazed magazine, Vogue and Busi- ion fatigue and a desire to learn the ness of fashion reports. stories behind what we wear.” Business insider Livia firth. Vogue Arabia’s sustainably edi- “Buy less, Buy better” tor. Vogue Arabia campaign 2019 highlighting how the shift of fast fashion is changing into more The rise of industry awareness of the fast long term conscious quality fashion”. fashion long term environmental impacts is increasing the pressures on brands to The rise of sustainability has not only augment there business models to meet grown in the fashion industry ,but a rise the new demand for the long-term .Con- of transparency in all lifestyle aspects. scious buyers are the new shift and the A growth of minimalism and conscious industry was on the brink of change prior living is a trend which has been influenc- pandemic .Now brands are aiming just to ing consumers lifestyles. Ranging from conscious beauty trends and new trendy sustainable brands such as “Glossier” .A rise of veganism due to transparency of environmental impacts of harvesting ani- mal-products Consious Consumerism Lifestyle Fashion strategy’s in the Pandemic Lockdown
Physical shop closures
Following the global lockdown all none es- sential stores and businesses have been shut. Fashion brands have had to force close phys- ical stores. This has re directed how brands can innovate to still keep business revenue streams running during the industry environ- mental changes.
The impact of physical stores shutting has has led to many stores facing issues of bankrupt- cy and hardships on paying running costs due to the lack of footfall sales. Brands which were struggling to keep relevance prior pandemic have come under the term “the Darwinian effect” (the state of fashion, 2020) where they have been wiped out due to the sudden business environment shift. For example the American luxury department store retailer Neiman Mar- cus Group has filed for bankruptcy due to the lack of physical customers in lockdown.
“The pandemic, which forced Neiman Mar- cus to close its stores and rely solely on e-commerce for revenue, exacerbated an already-precarious financial situation”. The brand simply could not keep inflow based of its un-innovation business position lacking in online relevance. Many other retailers have been predicted to face issues of bankruptcy such as Hudson’s Bay Co., which owns Saks Fifth Avenue (thewallstreetjournal,2020).More ex- amples of financial impacts; Gaps quarterly sales are down 43% , and overall UK sales have dropped 18% since the pandemic hit in march 2020(bof,2020).
Fashion Strategy’s in the Pandemic Lockdown
Global Economy E-Commerce growth
The global economy prior pandemic has been Following the physical store closures and so- facing the future predictions of a “Deep glob- cial distancing measures fashion brands have al recession” yet this has now been height- been turning to digital platforms for business. ened to be sooner; For online sales and to re-design the prima- ry marketing mix of operations. Brands are “Recovery from the pandemic will coincide providing a connection to consumers though with a recessionary market” marketing methods and product augmenta- (The state of fashion 2020 ; Corona virus update, 2020). tion for the new set of lockdown demands/de- sires. A direct to consumer business strategy Influencing the re-shift of the fashion indus- with no physical business exchange. try’s supply chains, workforces and the de- mand curve. This will be a shift of industry innovation to “adapt their business operating models”(state of fashion ,2020) to develop the con- Fashion Brands who have not innovated into sumer confidence and the stability of the in- this movement of e-commerce’s have been dustry. “hit the hardest…almost overnight the glob- al fashion industry on reliance’s on digital A consumer shift will impact the slow process streams have accelerated faster than any- of recovery for the economy. Consumers po- one could of anticipated”. This is due to con- tentially will be less driven to mass purchase sumers being isolated, yet wanting to stay in un necessity’s due to the financial un-stability touch with others and brands which fit into post pandemic. In china the pandemic situa- and adapt to this unique business opportuni- tion has seen the growth of society function- ty. ing back to normal with stores opening and lockdown ending. Focusing on the 7p marketing mix brands have been augmenting innovation methods However “the opening of physical retail to re adapt to place, promotion methods and stores does not mean business returns to products. normal”
“90% of stores reopened in china, footfall and purchases were 50% lower than pre crisis lev- els” (The state of fashion 2020 ; Corona virus update, 2020).
Projecting the uncertainty consumers have with attending the physical stores and with the purchasing power of choosing not to pur- chase none essential fashion goods. Fashion Strategy’s in the Pandemic Lockdown
Promotion & Place highlight how consumers are driven to gain a sense of community at these isolation times. Brands have been innovating and emphasis- Enhancing how brands digitally can take this ing promotional methods of marketing to opportunity to “capitalise on future opportu- consumers in the pandemic though using dig- nity’s and reduce risks” “become digital fron- ital solutions; social media, apps , live stream- tiers” (stateoffashion, 2020). ing sessions ,social chat platforms such as WeChat and zoom. With consumers not work- Alongside the micro shift in the place of fash- ing and being in lock down digital marketing ion photography there has also been a shift in is a profitable opportunity ; brands using in- the use of face masks for fashion purposes. fluencers and interactive streams to engage The associate of fashion embodying the 2020 consumers with branding and products can pandemic is a must with staying relevant with benefit sales. For example sportswear brand consumers life’s ,it not only glamourizes the Nike saw digital sales growth of 36% (The state pandemic though awareness but it is symbol- of fashion 2020), 2020 due to the pandemic in the ic. For example vogue featured articles about region of Asia. Nike has been developing its where to purchase “stylish masks” (vogue Nike run app promotions and social media online, 2020) and the symbol of masks where engagement methods such as Instagram live used in various April 2020 publications shown streams and special online discounts. The below. competitive advantage is to be present and active online during the pandemic.
Social media trends such as a shift in fashion photography highlights how consumers and brands are creating and adapting to the shift. Photoshoots though face-time and zoom ap- plications has escalated ,the hashtag terms of quarantine and isolation shooting have be- come prominent amongst fashion photogra- phy. This shift poetically can shape the indus- try forever due to it being a cheaper more personal method of fashion photography .for example ID magazine and vogue Italia have designed “Quarantine campaigns” (Will Cov- id-19 Change Fashion Photography?, 2020) us- ing the top photographers and models in the FaceTime shooting.
Society is on lockdown and consumers are gaining a sense of community from digital platforms. Consumers are having more time to connect with brands which relate to the current pandemic circumstances .English Government marketing schemes such as “clap for our NHS “ and “stay home” (NHS, 2020)
“The coronavirus also presents fashion with a chance to reset and completely reshape the industry's value chain - not to mention an opportunity to reassess the values by which we measure our actions “
(businessoffashion,2020). Current Consumer shifts. PART 2
Potential long-term consumer shifts: Pandemic influences This can amplify consumers to be more driv- en to sustainable goods which do not have a Following the pandemic the industry is an negative impact on the planet. The pandemic unstable time. Micro and macro consumer has led consumers more aware of human im- shifts will have to be integrated future busi- pacts on the world, a sense of humanitarian- ness model plans. The old industry methods ism and community ; this can be a key driver are at a stage of decline due to the rapid influx of sustainability becoming a expected value of consumer shifts .Focusing on millennials in the fashion industry. This can go through and gen Z (the tach savvy generations) ;The changing business models, supply chains and rise of technology based sales will cause an increasing importance of corporate social increase of industry themes to be demanded values. The term “wakeup call” and the con- by consumers; this section of the report will sumer shift of less is more is heightening the explore potential post pandemic consumer increase of potential conscious buying. shifts in the fashion industry. “Sustainability will be employed as one meth- The growth of sustainability in the fashion in- od to gain consumers trust and their wallets” dustry (Businessoffashionreportscoronavirus ,2020 ).
Leading on from the industry Growth prior pandemic, fashion sustainability is a growing movement in the fashion industry. Ranging from developing eco textiles, production/ supply chain services down to postage meth- ods ;it is the expiry of fast fashion business. Fast fashion focused on overbuying and fast fashion brands over saturating the market; yet post pandemic due to the economy and lifestyle changes consumers will be less driv- en to purchase non-essential goods. “In the USA 56% of consumers are cutting back on spending ,due to the economic uncertainty” (Mckindsay an Co COVID-19 consumer pulse survey). The business of fashion report has predicted “in the event of a vaccine being produced it could result in a spike in sales of a “euphoric” sense. However the pandemic will lead to global re- cession reducing consumer spending until a vaccine is produced and supplied globally.
“Many consumers will be looking for so called investment pieces -minimalistic and for ever- lasting items ,that feel more responsible giv- en the state of the world” (Businessoffashionreportscoronavirus ,2020 ) Current Consumer shifts. PART 2
Lifestyle changes : Millennials & Gen Z
Focusing on the younger generational con- Brand Purpose Model sumer bases ;to target Millennials and Gen- eration Z brands need to evolve and innovate to more than just a brand name but to brand RELEVANT CONSISTANT value lifestyle .Millennials and generation Z are tech savvy and “woke” consumers .These generations focus on corporate social re- AUTHENTIC VISION sponsibility values from brands before they purchase or even view a brands Instagram feed. These generations have grown up with PURPOSE consumer power and mass choice due to the ACTIVE growth of technology .
Focusing on the brand purpose framework millennials and Generation Z .focus on em- bodying social ,environmental ,political and economic activism into what they want from brands . Customer Intimacy Brands can innovate through also adapting their brand value net to target these genera- tions .Though embodying social responsibil- ity values ,blockchain and transparency and sustainability into business structures. “Mil- lennials consumers increasingly considering transparency alongside price in their pur- Brand Value Net chasing decisions” (Natural Products Insid- er,2019) . For example during the pandemic lockdown Brand in china sportswear brands Nike and Luko- Purpose mon focused on enhancing social responsi- bility; though using online platforms to reach the growing consumer demand of “research- ing ways to combat its seemingly relentless spread and sharing tips to boost immunity Operational Excellence and improve overall health” the brands were successful and it resulting in a growth of “36% Asian e-commerce sales”. (businessoffashion,2020) “ Gen Zin particular, wants to align themselves with brands that stand for something. Sustainability and ethical fashion are quickly becoming a part of this generation’s values set” “Prefer brands which share their val- ues ,would boycott brands based on controversial issues”
(millennial report ,2019)
(Sustainable brand,2019). Consumer Growth of Health & Wellness
Consumers are in government enforced lock- causal has been submerged though catwalks down this has influenced a lifestyle shift; of such as luxury brand Balenciaga producing isolation and more time for health and well- luxury athleisure lines and exploited by larger ness. The Uk’s government recommended well-known sports brands such as Nike, Adi- that people were aloud outside once a day for das and Puma. Social media trends, celebri- a social distancing form of experiments ,this ties and daily exercise allowance in lockdown poetically has lead to a surge of consumers has strengthened this lifestyle shift. prioritizing health and fitness unlike before. “Comfy sweatshirts are dressy enough for This shift has caused product demand a rise work-related Zoom calls, while tie dye sweats in athleisurewear and sporting goods .Con- and pastel-hued crop top and yoga legging co- sumers are no longer going out and occasion ord sets look good in at-home workout Insta- buying, they're buying goods for activity and gram posts and Tiktok challenge videos alike.” health in isolation. (Sweatsuits and Yoga Pants Are Selling Like Crazy. 2020) “Sell-through rates of tracksuits are up 36 percent this year through March, compared with the same period in 2019” “Activewear “This idea of being healthy and sporty and fit companies like Gymshark and Bandier have has become the new sexy … There’s a desire seen overall business improve over the past to look sporty even if you aren’t practising any sport,” month, Earnest Research shows”(Businessof- (Bernadette Kissane, apparel and footwear analyst at Euromonitor). fashion,2020). Brands who are selling the in demand goods are preforming better in the Sports and athleisure wear in isolation has pandemic, signifying the growth impacts of become a trend within consumers new life- the health & fitness surge and minimalism in styles . Such as social media streaming virtual the current industry. workout classes and a surge in trendy You- Tube workout programs such as the “Chloe- “Athleisure looks have emerged as the uni- ting workout” and “Joe wicks” hit workouts. form of choice for the housebound and ac- This has become a environmental shift of in- tivewear brands are benefiting” creased disposable time and a virtual method of socialising. Prior pandemic the growth of athleisure had been surfacing in fashion back from 2016 A example of a brand innovating to the lock- due to a movement of comfort and minimal- down lifestyle change is Millennial /Gen z istic living. This shift was also heightened by target brand Pretty Little Thing .Following its living though a economic uncertainty “ In strong online presence the brand has also 2010-2014 Shoppers viewed their purchases created a “stay home” (Stay Home | PrettyLittleThing, as investments and avoided items that might 2020) collection. Consisting of micro trends lose cachet with a shift in trends”. Following such as tie dye and comfort lounge clothing. the future predicted economic uncertainty Highlighting how brands can use the current following the pandemic ;the growth of health market situation as a opportunity for business and Wellness in lifestyles potentially can link due to the rise of demand for loungewear. to a long-term regrowth of athleisurewear de- mand. Referring to Maslow’s Hierarchy of needs the- The trend of sportswear being functional yet ory . The long term and effects of this move- ment are predicting the shift goes greater than the surface and consumers lifestyles will be changed for the long run.
“Demand for fitness-related products and services such as sportswear, trainers, wear- able fitness devices, [and] fitness training, is set to increase as good health may become one of the most valuable attributes of life af- ter the epidemic,” the FBIC report released in mid-March reads in part. (The Fitness Fashion Frenzy That Just Got Bigger, 2020)
Following the pandemic a surge in health priority awareness is predicted. Consumers safety, physiological needs and satisfaction will be the consumers priority’s during and post pandemic . The demand will no longer be for trend driven goods but for comfort & health needs due to a change in consumer buying values.
SELF ACTUALIZATION NEEDS
ESTEEM NEEDS
LOVE & BELONGING
SAFETY NEEDS
PHYSIOLOGICAL NEEDS
Forever Faster Sustainable Innovation
PUMA Business model innovation opportunity’s pamdemic adaptation
This section of the report will explore poten- tial opportunity’s for innovation strategy’s for brands to adapt to the lockdown busi- ness environment. Primarily focusing on the PRODUCTS global sportwear brand Puma. Puma is a Ger- man sportwear company that focuses on de- STYLE SERVICE veloping for a future world. Competitively Puma has advanced however the brand is still under the curve regarding its main competi- tors; Nike, Reebok and Adidas. The brand has VISION PUMA RELEVANT been referred too as the “younger brother” (BOF,2018) of the figurehead powerhouses of SUSTAINABLE PRICE the sportswear industry. The change of busi- ness environment sets an opportunity for the brand to take a head start against competi- BRAND VALUES tors and to gain respectable relevance in the industry.
PRODUCT/PEOPLE
Puma offers a range of products from shoes, sporting accessories and athleisure clothing. Puma in recent year has been innovating to become trendier and more relevant towards younger consumers such as using influenc- es in campaigns and investing in product placements/designs.For example the prod- uct placement in world known video game fortnite. The brands target market primary is female lead and age between Generation Z to Gen X the same target market range as its most direct competitor brands. Puma has been investing into sustainable and envi- ronmentally aware materials in recycling its products. The brand has a transparent supply chain for consumers on the brands website and a sustainable set of targets for the brand to drive towards. This creates a strong brand purpose within the younger generations who are driven to these corporate brand values. Puma is ahead of its competitors in terms of sustainability and this is an opportunity to ex- pose during the current consumer industry shift.
PUMA Business model innovation opportunity’s pamdemic adaptation PLACE/PROMOTION
Digital marketing is pumas’ main source of marketing, this strategy is relevant with the target consumer age range. Ranging from various digital channels of social media, paid online advertising and various e commerce sites. Puma has worldwide stored and fran- chises which is the physical aspect of the brand.
PROCESS
Puma has several experiences shareholder owners by kerling group “16%” who owns lux- ury Gucci and by its direct competitor Adidas “29%” (forbes,2020). This process allows the brand to have a stable source of investment capital but also by industry insiders. Com- petitively this creates Adidas as an influence on the brands movements which poetically is why the brands have such close business positions. Puma operates though strong cor- porate values regarding its employees and its suitability agenda. These core brand values shape the operations of the innovation lead brand.
Strengths / Opportunity’s
Advanced in Sustainably drivers Stylish goods Owned under industry powerful shareholders. Developed a strong online presence via social media campaigns and an updated website. Incorporate macro trends such as sustainabil- ity and diversity
Weaknesses / Threats
Highly competitive market Consumers fear of brand Green washing Competitor is a shareholder in the business. Coronavirus lockdown influences sales drop. Constant innovation investment is needed to keep floating against competitors. PUMA’s current position Strategy : Pandemic Market Prior pandemic the German retailer had been though the brand innovating digital market- over performing in growth over its compet- ing strategies in the pandemic. The brands itors; the brand reported a profit surge of previous growth has been overshadowed by “first-quarter sales rose a currency-adjusted the effects of the pandemic on the fashion in- 15.3” "The first quarter of 2019 was the best dustries. Even with stores currently opening quarter Puma has ever seen," (Puma Reports back again “90% of stores reopened in china, 'Best Ever' Quarter for Sales and Profit, 2020). footfall and purchases were 50% lower than This was accounted for by the brands inno- pre crisis levels” (The state of fashion 2020; vations to target younger tech savvy gener- Corona virus update, 2020).Puma is operat- ations with trendy athleisure products. Its ing in a very uncertain position in the market reported that the growth of the the Chinese .Alongside the lockdown in Asian country’s market lead to the increase. This established supply chains of manufacturing of garments Puma in the industry as being innovative and and shoes have been slowed down effecting current in new emerging markets. The brand the overall stock of the brands goods , poten- was succeeding in growth; compared to Nike tially leading to further supply chain malfunc- “which failed to meet profit estimates” mak- tions long term. ing brand shares fall by “5%”. Alongside Com- petitor and shareholder Adidas which has a lower sales growth of “5-9%” (Puma Reports, 2020) in 2019. Puma was developing due to shifting to the younger consumer demand shift of fashionable athleisure products, dig- ital marketing strategies and increase brand values transparency.
Following the industry pandemic shift from the first quarter of 2020, Pumas prior growth has been hit negatively. Focussing on the Chi- nese market which adds to “Third of their sales in Asia” the brands sales have been hit dramatically following the lack of store foot- fall, the lack of Asian tourists and the overall economic uncertainty with consumer spend- ing. In- fact the sales in this Chinese region have been dropping by “85% per monthly pe- riod since Chinese New Year celebrations on January 25th”. Competitively Nike and Adidas have also faced mixed changes of sales due to the virus; Adidas tackled sales dropping of over “80 %” and still has over half its stores / franchises shut. Nike however has faced a growth of e-commerce sales “of 36% “(The state of fashion 2020), in china potentially due to the consumer growth of digital sales and PUMA Business model Innovations:
Conversely following the current uncertain- Puma has a sustainable innovation opportu- ly of the industry Puma has released optimis- nity to solidify its trendy brand value driven tic quotes about the brands current market consumers during the global pandemic. The position , and future predictions “the uncer- brand can benefit from innovating to the tainty of duration of the virus has made it lockdowns consumer demand shifts to not difficult to forecast …. But it is working un- lose its sales growth budgets. der the assumption of things will normalise in the short- term” (Puma Reports Sales and Profit, 2020).This statement supports the brand values of community and innovation growth yet Puma is currently in a stalemate position ;is waiting for the Prior demand curve to return ;however following market analysis the fashion landscape will be poten- tially be changed long term ,following pre- dicted consumer shifts post pandemic.
PUMA X REPREVE COLLECTION Lockdown|Sustainable|Athleisure clothing collection.
The clothing line is a potential business ven- ture for submerging macro and micro social movements into a consist sustainable col- lection for Pumas consumers in “lockdown”. The clothing line would be a collaboration with Puma and the none profit organisation Repreve. Repreve is a sustainable brand which converts plastic bottles from the ocean into sustainable fabrics for garments. The brand has established connections with supplying brands such as Aeropostale , Ford , the North face, O’Neil swim , New balance and smaller Sustainability and ethical fashion are quickly start up sportswear brands with sustainable becoming a part of this generation’s values materials. Repreve specialises on the process set” (bof,2019) .Pumas brand values are based of converting bottles into recycled “Repreve on innovating materials and for consumer Fibres”. The collaboration would be designed performance as well as focusing on being following the consumer demand curve of the sustainable drivers and positive community increase of health & fitness, digital market- stakeholders. The sustainable lockdown line ing innovations and the growth of conscious would solidify pumas brand values and help buying with a uncertain world. Puma would be eliminate the issues of “green washing” but ahead of its direct competitor who have not solidify the brands sustainable position. Us- designed a fully suitable clothing line. ing tech innovations such as a QR codes on the lines products would increase a transpar- Business Model changes: Innovation Strategy ent supply chain; to re enforce its sustaina- ble social reasonability values. .This would be Focusing on the Ansoff’s matrix innovation creating a connection between the physical strategy theory(Ansoff Matrix, 2020) Puma product to a digital landscape; of its manufac- can release the new line strategically to aim turing and beginnings .Consumers simply can for the least risk factors. Focusing on the a Re- scan product tag QR code via personal smart- lated diversification method; a new business phone to trace its journey from raw materials environment in the pandemic and a new col- to the store shelves. Pumas value proposition laboration product line. This would be a meth- would be heightened within its competitive od of re enforcing Pumas strengths though re market as the demand curve for sustainable building its business model to adapt to the and trendy goods would be met with the inno- new current consumer shifts. vations of the clothing line. Pumas previous growth following investing into athleisure Transparent Corporate Social Responsibly. products and digital campaigns would be pro- longed. Consumers would be buying into a With the Puma x Repreve line focusing on movement and experience with the isolation targeting woke consumers generation Z and line. Consumers are in lockdown an the sense millennials .The brands values behind the in- of community and sustainability would in- novations of the line need to be transparent creased the positive brand proposition Puma to consumers. These generations aspire to has within its competitive landscape. Pumas buy into brands which “ stand for something… value proposition would be heightened with- PUMA X REPREVE COLLECTION Lockdown|Sustainable|Athleisure clothing collection.
Pumas value proposition would be height- ened within its competitive market as the de- mand curve for sustainable and trendy goods would be met with the innovations of the clothing line. Pumas previous growth follow- ing investing into athleisure products and dig- ital campaigns would be prolonged. Consum- ers would be buying into a movement and experience with the isolation line. Consum- ers are in lockdown an the sense of commu- nity and sustainability would increased the positive brand proposition Puma has within its competitive landscape.
Design & Business culture changes.
The collection will be limited to 10 versatile designs of the clothing, available in a wide range of sizes to enhance consumer diver- sity. The line would be comfort, practicality and style driven; following the latest micro trends and the macro movements of con- sumers getting woke. The clothing line would be an embodiment of the current consum- er desirable landscape. Heightening Puma on the societal social movements of female inclusivity, sustainability and an athleisure powerhouse. Consumers are shifting to a more conscious method of buying goods, a small sustainable athleisure line meets this demand; Business of fashion reports have predicted that “Green Brands Have a Head Start on Fashion’s Post-Pandemic Recovery” (Green Brands Have a Head Start on Fashion’s Post-Pandemic Recovery, 2020). The primary materials would be based of Pumas current sustainability enhancements such as sustain- able packaging made from “90% of packag- ing made from recycled paper approved of the FSC corporation); sourcing of “90% sus- tainable cotton” and the Repreve suitable fi- bre yarn made from plastic bottles from the world’s oceans. Changing the brands culture awareness of its sustainable methods but also highlighting how sporting fashion can be less harmful to the planet. This stratgey would embody the sustainable 'Best Ever' Quarter for Sales and Profit, 2020). line throughout Pumas business model ; to Following the sales of the line it then can be solidify the act of releasing a fully sustaina- further manufactured and distributed global- ble product. Focusing on the green washing ly. Following on from the first step of market theory grid from (businessoffashion,on- penetration and then market diversification, line2020) the use of transparency proof of theory from Ansoff’s matrix (Ansoff Matrix, sustainable production and products and 2020). gaining legitimacy value and trust from con- The collaboration line would be focusing ex- sumers in these uncertain and health moti- clusively on a direct to consumer approach. vated business environments. Alongside the From e-commerce sales though Pumas own products being sustainable with Repreve the website and social media platforms. This ap- brand can also use sustainable packaging to proach is suitable due to the lockdown proce- help reduce issues of greenwashing and to dures in place in Chinas retail landscape. This legitimacy change production methods. also creates an aspirational luxury approach Distribution to the line making its exclusive to consumers The clothing line would be distributed for who want the line directly from Puma; adding the Asian consumer, primary in China as this product value proposition. Alongside this it market is highly lucrative in terms of spend- reduces the costs of third-party limitations ing power of the lines target marker Gen- on maximising profits in these economic eration z and Millennials. This is leading on uncertain times. Direct to consumer brands from Pumas previous sales profit growth in have been arising due to the pandemic lock- this region in 2019 Prior pandemic “adds to down (The State of the Direct-to-Consumer a Third of their sales in Asia” "The first quar- Market, 2020) as there is limit physical ex- ter of 2019 was the best quarter Puma has changes taken place, this would be ensuring ever seen in sales figures," (Puma Reports safety and risk control for Puma. PUMA X REPREVE COLLECTION Lockdown|Sustainable|Athleisure clothing collection.
Competitive Advance Opportunity: Puma and Current Digital Strategies
The proposition of a sustainable collection Due to the pandemic the influx of digital for lockdown would be a technological in- marketing and e-commerce and a new tech- novation competitive lead. Puma would de- nologically lead business strategy Puma cur- velop a competitive business model though rently has to alter its current marketing strat- embodying the transparency of the use of egy. The overall health and fitness industry raw materials in its products, cost structure have gone digital. Consumers are doing live and its stakeholders. Though strengthening stream/zoom workouts, giveaways, health its business model it can develop a compet- and fitness memes. Brands such as Boohoo itive strategy to gain position advantage. with its own lockdown collection and Nike The athleisure industry is highly completive are relevant with the current demands from ranging from established direct competitors consumers in lockdown; though innovating Nike and Adidas which have a more innova- digitally to keep relationships with consum- tive digital marketing strategy ( three times ers and to strengthen potential for sales in the amount of pumas social media follow- this uncertain time. Using influence from the ers(Instagram,2020 ); and more global estab- marketing theory “The viral bomb”; Pumas lishment. The industry also faced cross overs strategy needs to prioritize on keeping mass with rapidly growing fast fashion brands such content with relevance and shareability. To as Boohoo and Pretty little thing; both these create a expedience and unique community brands have released trendy athleisure lock- selling point: emotionally connecting with down clothing ranges at lower price points. the consumers in lockdown. Focusing on the The completive advantage Puma would have theory “ the key online areas of PR” Methods over these is the products are from sustain- of content examples: creating campaigns able materials, higher quality control and a though isolation with diverse ranges of in- more heritage lead brand value proposition. fluencers and customers themselves; fre- Together with the product and brand place- quently posting new digital content such as ment Pumas strategy would be disruptive giveaways current political posts and using with embracing macro trends into its busi- Virtual reality and IGTV for virtual viewing of ness strategy though the new collection. the products; keeping relevant with the lat- est social media trends. The brand would be developing on its previous investing’s of mar- keting, the digital based marketing strategy is virtual for the brands success as its direct to consumer-based sales. PUMA X REPREVE COLLECTION Lockdown|Sustainable|Athleisure clothing collection. PUMA X REPREVE COLLECTION Lockdown|Sustainable|Athleisure clothing collection.
Strengths & Opportunity’s
• Puma would be innovating to a new to create new intonational methods to stay in demand consumer shift, establishing the on top. brands relevance and competitive advantage. • The consumer shift predictions may • Puma would be solidifying its stance not last as long as budgeted; risk control of on the use of sustainability in fashion, though this is line would be produced in a limited size embodying the movement though its busi- however this can be a threat a cause a loss as ness model. costs. • Transparency and blockchain use would increase pumas populator with young- er more value driven consumers. This would heighten Pumas brand mission aims of being corporate social value and environmentally driven. • The lockdown line would be done my puma first regarding its direct competitors, the sustainability aspect would be a key driv- er against fast fashion brands. • Focusing on the Chinese market for the digital distribution of the line will can po- etically establish the brands consumer land- grab after the sales loss footfall due to phys- ical shops shutting. • Long-term the brand potentially could be ahead of the demand curve after the pan- demic as consumers-built relationships with the brand during uncertain times.
Weakness & Threats
• Puma could face issues of slow ship- ping due to the slow pace of the market in chi- na currently, this would influence a negative impact on the brands customer services. • Puma would need to have a fast devel- opment of the lockdown products which can be a slowed process due to the sustainable materials manufacturing. Focusing on con- sumers getting “woke” and “now or never” macro trends this can be an issue in supply chain management. • The brand could face issue of green washing if transparency and strategy isn’t im- plemented. • Direct competitor brands such as Nike my jump onto the idea and Puma would need
The Future Landscape of Fashion Succeeding Covid 19.
This section of the report will be exploring the potential future landscape innovations for fashion brands post pandemic.
Increased Brand Value & start producing less inventory ; this is due to Smaller market demand predictions the lack of sales since the pandemic hit result- ing excess inventory. This is a shift of brands Following the pandemic brands and consum- being conscious with not over producing to ers economically are facing hardships of pre- meet the unpredicted demand curve. Health dictions of a “deep global recession” (BBC, and fitness have gained a shift since lockdown 2020) and long-term effects of “recovery ,consumers have had disposable time to re- from the pandemic will coincide with a re- adjust its lifestyle value set. Following the cessionary market” (The state of fashion 2020 predicted reduced fashion demand its poten- .Influencing the needed re-shift of fashion tial that health and fitness can become more industry’s supply chains, workforces and the prominent in consumers lifestyles following demand curve. the pandemic. following the surge of virtual A consumer shift will impact the slow process workouts physical gyms being shut and ath- of recovery for the economy. Consumers po- leisure wear sales increases. Consumers are tentially will be less driven to mass purchase becoming lifestyle conscious as well as fash- unnecessity’s due to the financial un-stability ion conscious. post pandemic. An example of a brand cur- rently reacting to this shift is Gucci ;Gucci has released a statement of going seasonless and “This crisis has started to bring to only having two fashion shows yearly. This untraditional method of luxury fashion week light some of the systemic problems structures was followed by “I will abandon the in the industry... It’s revealed just worn-out ritual of seasonality’s and shows to how fragile the industry is.” regain a new cadence, closer to my expres- sive call,” (How to Prepare Your Business for a Post-Pandemic World, 2020) said designer Alessandro Michele” . Highlighting the change in market demand size from consumer shifts of conscious buying. “Gucci reported waves of radical change” unleashed by the pandem- ic.” “This strategy by a highly established brand shifts the whole dynamic of how fash- ion collections and fashion shows can be changed in the future. Consumers are more conscious about purchasing due to econom- ic uncertainly , brands will need to focus on building more increased brand value propo- sition needed by brands to gain customers . Following Gucci reducing its seasons other brands such as Gap are packing away stock till next year and it’s been advise that brands Value of sustainable transparency and tense. “Regarding using digital virtual reality social issues to show case its season collections. This po- tentially shifts the landscape of how fashion Following the recent macro shifts of consum- weeks potentially will change in the long run. ers “getting woke” on social issues embed- Regarding costs, accessibility and a more ding into fashion; Brand transparency and personal experience lead fashion week. Due blockchain methods may influence a shift in to the lockdown of physical stores and a lack how many more brands will become transpar- of consumer footfall virtual reality stores are ent within its core values. Focusing on what evolving as a poetical industry change. Ama- the future woke consumers want from a fash- zon has invested in designing various virtual ion brand. Since the lockdown social issues of reality aspects such as the VR wardrobe styl- racism (black life’s matter movement) , sus- ist and the VR convenient store experience tainability and the lack of diversity in the in- (How Amazon’s Prime Wardrobe Will Impact dustry have heightened. Workers’ rights and Department Stores, 2020).This could lead to corporate responsibly is now getting trans- a change to the need for physical shopping parent and brands are facing critique due to experience primarily with younger tech lead issues. “Covid-19 has in some ways flipped generations of millennials an gen Z. follow- the switch, laying bare inequities within fash- ing the movement of a more digital shopping ion’s supply chain that now leave millions of experience the meth0d of how garments fit vulnerable garment workers at risk of destitu- consumers could be shifted post pandemic tion and disease” (Will Fashion Ever Be Good due to health and safety and ordering online. for the World? Its Future May Depend on It., By using technological innovation methods 2020). Brands will need to continue to be such as Amazons 3D sizing software. ( Am- more innovating and accustomed to issues azon Acquires 3D Body Model Software, Is ,not a fashion provider but more a value com- Spider Silk the Future of Fashion? 2020)The munity figure to the community development of how social media becomes more social business than social usage can be a lead to how brands market in the future. Digital Innovations
Due to the human race being out into lock- down and reducing physical aspects of shop- ping with social distancing ;the digital world has advanced . An increase in the use of vir- tual reality in innovating fashion weeks and shopping experiences. following from Guc- ci’s innovations of reducing its fashion sea- sons “It would be nice to choose whether to meet physically or not. But if we don’t meet in person, the experience will be equally in- References 2020. The state of fashion 2020 ; Corona virus update.
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